SP Fiber Technologies Acquires SP Newsprint Assets
Sept. 11, 2012 - SP Fiber Technologies LLC (SPFT) said that it has acquired substantially all of the assets and certain liabilities of SP Newsprint and its subsidiaries in a court-approved sale.
SPFT said that it will relocate its corporate headquarters to its facility in Dublin, Georgia.
The company will operate its mills in Newberg, Oregon and Dublin, Ga., as well as its wholly-owned subsidiaries SP Recycling Southeast LLC (SPRS) and SP Recycling Northwest LLC (SPRN). Both recycling companies are based in Atlanta.
Jay Gurandiano, who will serve as Chairman of the Board, President and CEO, has held senior management positions at Smurfit-Stone Container and founded St. Laurent Paperboard. Gurandiano will also oversee SPFT's recycling businesses.
“We are excited about the future of SPFT and all of its businesses,” said Gurandiano. “SPFT is a well-capitalized company with committed and knowledgeable shareholders and an exciting strategic plan to strengthen its place in the newsprint and packaging markets. It has a strong and experienced workforce and a solid customer base to build upon.
“While newsprint will remain the foundation of the business for the foreseeable future, the company is looking forward to aggressively developing an innovative, value-added packaging component to service the paperboard, containerboard and converting marketplaces,” Gurandiano said.
SP Newsprint Holdings LLC and its subsidiaries on Nov. 15, 2011 each filed a voluntary petition for relief under Chapter 11.
U.S. Bankruptcy Judge Christopher S. Sontchi on Sept. 4, 2012 approved the sale of SP Newsprint Holdings LLC for $145 million to a group of lenders led by GE Capital Corp. that had served as a stalking horse bidder for the struggling newsprint and recycling firm since July.
Judge Sontchi agreed to sign off on the sale documents, which included requests for additional debtor-in-possession financing and the conversion of the post-sale case from Chapter 11 to Chapter 7.
SOURCE: SP Fiber Technologies LLC and Law360